Pakistan's First Russian LPG Arrival

Jawad

28 Sep 2023

302

Pakistan's First Russian LPG Arrival

Pakistan's receipt of its first consignment of liquefied petroleum gas (LPG) from Russia signals another milestone in the country's energy procurement efforts. This development comes on the heels of Pakistan's inaugural receipt of Russian crude oil earlier this year, facilitated with assistance from Iran.

The journey toward this collaboration began when a Russian delegation arrived in Islamabad in January 2023 for extensive negotiations, ultimately resulting in a landmark agreement. These discussions covered a range of technical aspects, including insurance, transportation logistics, and payment methods. By the end of March that year, both nations had successfully concluded the negotiations, expressing their shared commitment to fostering mutual economic benefits through the trade of oil and gas.

Russia has delivered the first batch of liquefied petroleum gas (LPG) in the amount of 100 thousand metric tons to Pakistan through Iran's Sarakhs Special Economic Zone. Consultations on the second shipment are underway
🇷🇺🤝🇵🇰 pic.twitter.com/AZJwf5f9I5
— RusEmbassy_Pakistan (@RusEmbPakistan) September 26, 2023

The Russian embassy in Islamabad reported that this recent delivery, which amounted to 100,000 metric tons of LPG, was routed through Iran's Sarakhs Special Economic Zone. While details regarding the pricing and potential discounts on the LPG remained undisclosed, it is known that Pakistan utilized Chinese yuan for the payment of Russian crude. However, the exact transaction amount has not been revealed.

This acquisition of discounted energy resources from Russia holds significance for Pakistan, as the country grapples with a severe balance of payments issue and an ongoing economic crisis. Energy imports constitute a substantial portion of Pakistan's foreign payments, and discounted imports from Russia offer a degree of relief. These strategic procurements are crucial as Pakistan navigates the challenges of its external debt and the potential risk of default.